Galoc's FPSO Rubicon Intrepid Back in Business

Otto Energy has received confirmation from field operator, the Galoc Production Company (GPC), that production at the Galoc Oil Field has recommenced following the reconnection of the Mooring & Riser System (M&RS) to the FPSO Rubicon Intrepid.

The original disconnection, which occurred in late June 2009, was due to adverse weather conditions associated with Tropical Storm NANGKA (Feria). Following the disconnection the riser subsequently sustained damage, which required the replacement of one of its 30 meter long sections. This work was undertaken on location by the FPSO operator Rubicon Offshore International using their own work class vessel Rubicon Maverick. Completion of the work was delayed due to continuing poor weather experienced in the Galoc Field area over the last two months, which restricted the subsea work activities. After initial flush production it is anticipated that daily throughput will stabilize at pre-shut down levels of 11,000 barrels of oil per day.

Otto owns 31.38% of GPC, which holds 59.84% working interest in the license, giving Otto 18.77% indirect interest in the project. The Galoc Oil Field is located in Service Contract 14C1 off the west coast of Palawan in the Philippines.